Commerzbank Doubles Quarterly Profit, Helped By Higher Interest Rates

Germany’s Commerzbank (ETR:CBKG) said on Wednesday that net profit nearly doubled in the first quarter, a better-than-expected result helped by higher interest rates. The bank said it sees “upside potential” in net interest income this year, and raised its forecast to 7 billion euros ($7.7 billion) from a previous 6.5 billion euros. The bank’s shares were indicated to open 2.5% higher. Net profit of 580 million euros in the first quarter compares with a profit of 298 million euros a year earlier. Analysts had on average expected profit of 481 million euros, according to a consensus forecast published by Commerzbank. Commerzbank, one of Germany’s best-known banks, is in the middle of a major overhaul, cutting thousands of workers and hundreds of branches to save on costs and lift profits. Many banks have reported increases in revenue and profit for the first quarter on the back of higher interest rates. Last year, Commerzbank booked a second consecutive year of profit, and the bank rejoined the prestigious DAX index of blue-chip companies. It is still partially owned by the government following a bailout during the financial crisis more than a decade ago, and analysts have said that it is vulnerable to soaring inflation, a slower economy and potential soured loans. “Commerzbank is in good shape. Our transformation is making good progress and is increasingly paying off,” said Chief Executive Officer Manfred Knof.

Related Posts
Dollar Steadies After Powell’s Testimony; Sterling Awaits BOE Meeting

The U.S. dollar stabilized in early European trade Thursday near a one-month low after the first day of Federal Reserve Read more

Global banks raise forecast to 4% peak for key ECB rate

Goldman Sachs (NYSE:GS), BNP Paribas (OTC:BNPQY), Uncredited (BIT:CRDI) and RBC Capital Markets had earlier expected the ECB’s terminal rate to Read more

4 Big Analyst Picks: Accenture Upgraded To Neutral Ahead of Q3 Earnings

Earlier this week, the company announced a $3 billion investment over three years in its Data & AI practice. The Read more

Toyota Wins Over Shareholders at AGM After Questions On Strategy, Governance

Toyota shareholders backed the board and voted down the first resolution proposed in 18 years at an annual general meeting Read more

0 0 votes
Article Rating
Subscribe
Notify of
guest
0 Comments
Inline Feedbacks
View all comments
0
Would love your thoughts, please comment.x
()
x